Institutional investors are increasingly wary of the ESG promises being leveled by firms, with 86% of US investors saying they think companies "overstate or exaggerate" their ESG progress.

Another 72% of investors internationally say they don't believe companies will achieve their stated ESG commitments, according to new research from Edelman. A whopping 94% of US investors say they expect companies to establish and communicate a net zero climate plan, but 92% also expressed concern that companies aren't effectively executing on those promises.

The firm's fifth annual Trust Barometer Special Report: Institutional Investors surveyed 700 such investors across seven markets this fall and notes that investors are "skeptical" of ESG disclosures and commitments, with 87% of respondents saying they anticipate more litigation as a result of firms failing to deliver on their ESG promises.